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What the Baltimore Key Bridge collapse means for shipping companies

The Francis Scott Key Bridge in Baltimore, Marlyand, has tragically collapsed after a cargo ship collided with the structure early Tuesday morning, March 26. The incident has left six individuals who were working on the bridge at the time unaccounted for and reported missing. Flexport Founder and CEO Ryan Petersen joins Yahoo Finance Live to discuss the potential ramifications for shipping companies now that the port is closed. Petersen highlights that shipping companies are "working overtime... to figure out what to do." He explains that the ship collision will inevitably lead to delays in cargo shipments, drawing parallels to the Suez Canal where cargo remained in "litigation limbo" for over a year. Petersen emphasizes that new routes will need to be determined and "extra coordination" will be required to facilitate the transition of cargo transport from sea to land, describing the situation as "a scramble" to deliver customers' cargo. While Petersen estimates that rebuilding the bridge itself could take "several years," he expresses optimism that the restoration of the shipping channel might be a more manageable task, potentially taking "a matter of weeks or months." However, he calls this an "adaptive" situation, with most cargo likely to be re-routed to the West Coast and price increases likely to occur. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith


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